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Disability Trusts - Window of opportunity to convert existing trusts |
Families may now make private financial provision for the future of a family member with severe disabilities through the creation of a special disability trust. |
Long-awaited means test concessions now allow a severely disabled person's pension to be unaffected by a trust income or asset up to the value of $500,000. |
For these to apply, the trust must strictly comply with the new law and any department rulings, and it must be established for the sole purpose of providing care and accommodation for a person with a severe disability. |
The first step in establishing a severe disability trust is to verify with Centrelink or the Department of Veteran Affairs that the person for whom the trust is being established is severely disabled within the terms of the new law. |
The trust must have only one principal beneficiary and its sole purpose during their lifetime, as provided in the trust deed, must be to meet their reasonable care and accommodation needs required because of the disability. |
If a trust was created before 20 September 2006 and does not comply with the new law, the trustee can apply for it to be treated as one. It may be exempted from the requirements or be required to comply with some specified conditions. These need to be met by 30 June 2007 when the transition period expires. |
All CEOs should put OH&S on the agenda at monthly board meetings and demand that their subordinates report on risks, policies and give assurances that experts are in place to supervise OH&S. |
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